New Brunswick Estate of $550,000 in 2026: Probate Registry Fees, Executor Compensation, and What Two Adult Children Receive After the Terminal Tax Return

The Estate: A Moncton Retiree With Three Asset Types

Margaret's $550,000 estate is typical of a retired New Brunswicker who paid off the mortgage decades ago, kept savings in GICs through a local bank branch, and contributed modestly to an RRSP during her working years. The estate has no rental property, no business interests, and no cross-border complications. It should be straightforward — but "straightforward" still means five separate cost layers between death and distribution.

Layer 1: New Brunswick Probate Fees Under the Probate Court Act

New Brunswick charges a flat $5 per $1,000 of estate value on all assets that require a grant of probate. There is no exempt first tier (unlike Ontario, which exempts the first $50,000), no percentage escalator, and no cap. The minimum fee is $25.

The critical question: which of Margaret's assets require probate?

New Brunswick probate fee: $480,000 ÷ $1,000 × $5 = $2,400.

Layer 2: The Terminal Tax Return — Where the Real Tax Bill Lives

Canada doesn't charge an inheritance tax. What it does charge is income tax on the deceased's final (terminal) T1 return — and for Margaret, two events generate taxable income at death.

Event 1: RRSP collapse — $70,000

Under section 146(8.8) of the Income Tax Act, Margaret's RRSP is deemed to have been fully deregistered immediately before death. The entire $70,000 is included as income on her terminal return. There is no spousal rollover available — that provision under ITA section 146(8.1) only applies when the beneficiary is a surviving spouse or common-law partner. James and Karen inherit the RRSP cash directly ($35,000 each), but the tax falls on Margaret's estate.

Event 2: Accrued GIC interest — ~$6,400

Margaret's $160,000 in GICs earned approximately 4% annually. Interest that accrued up to the date of death but had not yet been paid or reported is included as income on the terminal return. On roughly 12 months of accrued interest: $160,000 × 4% = ~$6,400.

Event 3: Principal residence — $0

The Riverview bungalow qualifies for the principal residence exemption under section 40(2)(b) of the ITA. Margaret owned and lived in it as her only home for nearly 40 years. Deemed disposition at death triggers a $235,000 capital gain ($320,000 FMV minus $85,000 original cost) — but the PRE eliminates it entirely. $0 tax on the home.

Terminal return calculation

On approximately $81,900 of taxable income in New Brunswick, the combined federal and provincial tax (after basic personal amount credits) is approximately $18,400. The bulk of that bill — roughly $14,000 — is attributable to the RRSP collapse. The GIC interest adds another ~$2,000, and the partial-year income accounts for the rest.

Layer 3: Executor Compensation

New Brunswick does not prescribe a fixed statutory percentage for executor compensation the way Ontario does with its 2.5% guideline. Instead, compensation is determined on a "fair and reasonable" basis under provincial trust legislation, considering:

• The size and complexity of the estate
• The time and skill required by the executor
• The care and responsibility involved
• The results achieved

New Brunswick courts have historically allowed executor compensation in the range of 3–5% of total estate value for estates of moderate complexity. Margaret's estate is straightforward — three asset types, two beneficiaries, no disputes, no business interests. James, as executor, can reasonably claim approximately 3% of $550,000 = $16,500. If the estate were more complex (contested will, rental property, cross-border assets), the percentage could climb toward 5%.

James should know: executor compensation is taxable income to him personally. At his marginal rate, that $16,500 gross is roughly $11,000–$12,000 after tax. He can also claim reimbursement for out-of-pocket expenses (travel, postage, courier fees) separately from compensation.

Layer 4: Legal and Accounting Fees

For a straightforward New Brunswick estate with a valid will, typical professional fees include:

Layer 5: Net Distribution — What James and Karen Actually Receive

Here is the full cost stack, from the $550,000 gross estate to the net cheques written to each child:

That is an effective cost of approximately $43,300 on a $550,000 estate — roughly 7.9% of the gross value. The terminal return tax is the largest single cost at $18,400, followed by executor compensation at $16,500. Probate fees — the cost most people fixate on — are actually the smallest line item at $2,400.

Province Comparison: Same $550,000 Estate in Ontario and Nova Scotia

Province of residence at death is one of the largest single levers in estate cost. Here is what the identical $550,000 estate — same $480,000 probate value, same $70,000 RRSP collapse, same accrued GIC interest — would cost in three different provinces:

The difference between New Brunswick and Nova Scotia on probate alone is $5,300 — more than a year of property tax on a modest Maritime home. Ontario sits in the middle on total costs but charges the highest probate rate per dollar above the exemption threshold.

What James Should Do as Executor — Timeline

A practical sequence for settling Margaret's estate:

Three Moves Margaret Could Have Made to Reduce the Estate Cost

Margaret's estate is already relatively tax-efficient — the PRE eliminates the largest potential gain, and NB's low probate fees keep that layer small. But three planning levers were available:

1. RRSP meltdown before death

If Margaret had withdrawn the $70,000 RRSP over her last 3–4 years of life — taking $17,000–$23,000 per year — each withdrawal would have been taxed at her lower living-year marginal rate (likely 25–30%) rather than stacking on top of GIC interest and CPP/OAS income on the terminal return. Potential saving: $3,000–$5,000 in total income tax, depending on her annual income during those years.

2. TFSA conversion strategy

Margaret had $109,000 of cumulative TFSA contribution room available in 2026 (assuming she was 18+ since 2009). If she had systematically withdrawn RRSP funds and recontributed to her TFSA over the last decade, the $70,000 RRSP could have been converted into a TFSA — passing to the children entirely tax-free and probate-free via successor holder or beneficiary designation. The RRSP income tax on the terminal return would have been eliminated.

3. Joint ownership of the GICs with right of survivorship

If the GICs had been held jointly with one of her children with right of survivorship, they would have passed outside the will — avoiding probate on $160,000 and saving $800 in NB probate fees. The risk: joint ownership exposes the GIC to the child's creditors and potential attribution issues during Margaret's lifetime. For $800, the risk-reward on this strategy is marginal.

The Decision Lever That Mattered

On a $550,000 New Brunswick estate, the terminal return tax ($18,400) exceeds the probate fee ($2,400) by a factor of seven. The RRSP collapse is the single largest tax event, and it was entirely controllable during Margaret's lifetime. A systematic RRSP meltdown into TFSA over her last working decade — withdrawing at 25% marginal rates instead of having the full balance hit the terminal return at 30%+ — would have saved $3,000–$5,000 in income tax and converted the entire $70,000 into a permanently tax-free, probate-free asset.

The lesson is the same across every province we model: probate fees get the headlines, but the terminal return gets the money. Plan for the return, and the probate fee takes care of itself.